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One of my personal goals (and likely the goal of many of you reading this) is to one day utilize dividend income as a means to supplement my income, or even live entirely off my dividend income. When most people think of
SCHD: A Dream ETF For Dividend Growth Investors
Summary
- My goal is to use dividend income to supplement or fully support my cost of living, a common aspiration among investors.
- SCHD’s stock selection process ensures a combination of a solid starting yield and strong dividend growth (13.03% CAGR since 2018).
- Historical data suggests dividend growth stocks, including SCHD’s underlying index, tend to outperform over longer periods—especially in bear markets.
- With high interest rates, inflation concerns, and extreme market concentration in tech stocks, conditions are ripe for a market rotation.
I believe value dividend investing has proven to be one of the most effect forms of investing as it allows you to buy quality companies at great prices while receiving cash flow, without selling your position in a stock. I went to school for finance and have worked in finance my entire career, and am currently building a portfolio of dividend growth stocks that I believe will one day give me the ability to live off dividend income. I share my thoughts here on Seeking Alpha, Twitter, YouTube and Dividendology!
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SCHD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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